The Indonesian Ministry of Energy and Mineral Resources (ESDM) is considering adjusting nickel production in 2026 to maintain supply-demand balance in the global nickel market. The ministry stated that this move aims to align output more closely with domestic industrial needs and ensure that minerals are processed within the country.
Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, pointed out that the 2026 Work Plan and Budget (RKAB) for minerals and coal will be adjusted according to the requirements of domestic processing and refining industries. In an interview, he explained that specific plans regarding nickel production are still being discussed with the Directorate General of Minerals and Coal, and the government will evaluate the RKAB submitted by mining companies to ensure they meet the actual needs of the domestic industry.
Yuliot Tanjung emphasized that the adjustment is not simply about reducing production but about adapting to industry demand and avoiding oversupply that could lead to price declines. He stated that by balancing supply and demand, stable industry operations can be maintained, reasonable profits for enterprises can be achieved, and ultimately national revenue can be increased.
Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia also noted that the prices of commodities such as coal and nickel are currently under pressure, mainly due to oversupply in the global market, to which Indonesia contributes a significant share. Using coal as an example, he explained that Indonesia's annual supply accounts for nearly half of global trade volume, and excessive supply has already led to price drops. Therefore, the government will regulate production to maintain supply-demand balance, ensuring corporate earnings and national tax revenue.
Beyond pricing factors, Bahlil also stressed that production control aims to protect domestic mineral resources, prevent over-exploitation, ensure sustainable utilization of resources, and benefit future generations. The government will also use the RKAB mechanism to impose restrictions on enterprises that violate environmental regulations.
Written by Cora Ji, jiruyan@mysteel.com
